CASH FLOWS FROM FINANCING ACTIVITIES

Một phần của tài liệu Báo cáo thường niên năm 2013 - Công ty Cổ phần Tập đoàn Thiên Long (Trang 90 - 104)

01 Profit before tax 165,549,931,376 135,703,755,011 Adjustments for:

02 Depreciation and amortisation 38,479,852,025 38,700,467,161

03 Provisions 2,710,429,511 (567,222,843)

04 Unrealized foreign exchange

gains 19.2, 20 (140,559,437) (856,441,236)

05 Profits from investing activities (7,431,358,262) (4,704,220,628)

06 Interest expense 20 22,624,742,928 39,797,840,212

08 Operating profit before changes in

working capital 221,793,038,141 208,074,177,677

09 (Increase) decrease in receivables (21,458,106,695) 2,634,067,564 10 (Increase) decrease in inventories (35,171,683,994) 48,089,675,865 11 (Decrease) increase in payables (115,779,521) 15,290,148,267 12 Decrease in prepaid expenses 2,783,237,643 5,632,658,066

13 Interest paid (23,224,184,474) (40,956,500,233)

14 Corporate income tax paid 23.2 (51,307,839,359) (43,855,529,082) 15 Other cash inflows from operating

activities 4,881,037,989 7,268,330,728

16 Other cash outflows from

operating activities (18,822,524,957) (6,379,788,361) 20 Net cash flows from operating

activities 79,357,194,773 195,797,240,491

II. CASH FLOWS FROM INVESTING ACTIVITIES

21 Purchase and construction of

fixed assets (25,379,818,019) (40,347,473,037)

22 Proceeds from disposals of

fixed assets 3,345,919,929 1,611,293,597

25 Payments for investments in

other entities - (6,250,000,000)

26 Proceeds from sale of investments

in other entities 5,131,523,252 1,630,000,000

27 Interest and dividends received 7,505,961,584 5,549,642,937 30 Net cash flows used in investing

activities (9,396,413,254) (37,806,536,503)

III. CASH FLOWS FROM FINANCING ACTIVITIES

33 Drawdown of borrowings 732,190,850,245 676,759,363,482 34 Repayment of borrowings (755,788,287,452) (746,489,790,044)

36 Dividends paid (21,179,835,000) (17,753,015,000)

40 Net cash flows used in financing

activities (44,777,272,207) (87,483,441,562)

CONSOLIDATED CASH FLOW STATEMENT (continued) for the year ended 31 December 2013

VND

Code ITEMS Notes Current year Previous year

50 Net increase in cash and cash

equivalents 25,183,509,312 70,507,262,426

60 Cash and cash equivalents at

beginning of the year 4 151,264,484,956 80,780,886,340 61 Impact of exchange rate fluctuation 1,517,596 (23,663,810) 70 Cash and cash equivalents at

end of the year 4 176,449,511,864 151,264,484,956

Thien Long Group Corporation Consolidated financial statements 31 December 2013 Thien Long Group Corporation Consolidated financial statements 31 December 2013

B09-DN/HN B09-DN/HN

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS as at and for the year ended 31 December 2013

1. CORPORATE INFORMATION

Thien Long Group Corporation (“the Company”) is a shareholding company incorporated under the Law on Enterprise of Vietnam pursuant to Business Registration Certificate No. 4103003187 issued by the Department of Planning and Investment of Ho Chi Minh City on 14 March 2005 and the following Amended Business Registration Certificates:

Amended Business Registration Certificates: Date

2nd amendment 6 April 2007

3rd amendment 15 October 2007

4th amendment 28 March 2008

5th amendment 5 July 2011

6th amendment 11 August 2011

7th amendment 18 December 2012

8th amendment 23 September 2013

9th amendment 21 November 2013

The Company was listed on the Ho Chi Minh Stock Exchange in accordance with Decision No.

20/QD-SGDHCM issued by the Ho Chi Minh Stock Exchange on 2 February 2010.

The current principal activities of the Company are to manufacture and trade stationeries, class room equipment, plastic teaching instruments, plastic household appliances, printing stamps and performing screen-printing and pressing on packing and products.

The Company’s registered head office and factory are located at Lot 6-8-10-12, Road No. 3, Tan Tao Industrial Park, Tan Tao A Ward, Binh Tan District, Ho Chi Minh City, Vietnam.

The number of the Group’s employees as at 31 December 2013 was 2,969 (31 December 2012:

2,919).

Corporate structure

The Company includes 4 subsidiaries, in which:

Thien Long Long Thanh Manufacturing Trading Company Limited (“TLLT”), a one-member limited liability company, was incorporated under the Law on Enterprise of Vietnam pursuant to Investment License No. 472031000036 issued by the Dong Nai Industrial Zone Authority on 20 December 2005. TLLT’s registered office is located at Road No.7, Long Thanh Industrial Park, Dong Nai Province, Vietnam. TLLT’s principal activities are to manufacture and trade stationery products.

Thien Long Global Trading and Services One Member Co., Ltd (“TLGTS”), a one-member limited liability company, was incorporated under the Law on Enterprise of Vietnam pursuant to Business Registration Certificate No. 4104002492 issued by the Department of Planning and Investment (“DPI”) of Ho Chi Minh City on 15 January 2007. TLGTS’s registered office is located at Lot 6-8-10- 12, Road No.3, Tan Tao Industrial Park, Tan Tao Ward, Binh Tan District, Ho Chi Minh City, Vietnam.

TLGTS’s principal activity is to trade stationery products.

Tan Luc North Trading Service One Member Company Limited (“TLNTS”), a one-member limited liability company, was incorporated under the Law on Enterprise of Vietnam pursuant to Organisation Registration Certificate No. 0105012605 issued by the DPI of Ha Noi City on 19 November 2010. TLNTS’s registered office is located at 78 Bach Dang Street, Thanh Luong Ward, Hai Ba Trung District, Ha Noi City, Vietnam. TLNTS’s principal activity is to trade stationery

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the year ended 31 December 2013

2. BASIS OF PREPARATION

2.1 Accounting standards and system

The consolidated financial statements of the Company and its subsidiaries (“the Group”) expressed in Vietnam dong (“VND”), are prepared in accordance with the Vietnamese Enterprise Accounting System and Vietnamese Accounting Standards (“VAS”) issued by the Ministry of Finance as per:

Decision No. 149/2001/QD-BTC dated 31 December 2001 on the Issuance and Promulgation of Four Vietnamese Accounting Standards (Series 1);

Decision No. 165/2002/QD-BTC dated 31 December 2002 on the Issuance and Promulgation of Six Vietnamese Accounting Standards (Series 2);

Decision No. 234/2003/QD-BTC dated 30 December 2003 on the Issuance and Promulgation of Six Vietnamese Accounting Standards (Series 3);

Decision No. 12/2005/QD-BTC dated 15 February 2005 on the Issuance and Promulgation of Six Vietnamese Accounting Standards (Series 4); and

Decision No. 100/2005/QD-BTC dated 28 December 2005 on the Issuance and Promulgation of Four Vietnamese Accounting Standards (Series 5).

Accordingly, the accompanying consolidated balance sheet, consolidated income statement, consolidated cash flow statement and related notes, including their utilisation are not designed for those who are not informed about Vietnam’s accounting principles, procedures and practices and furthermore are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries other than Vietnam.

2.2 Applied accounting documentation system

The Company’s applied accounting documentation system is the Voucher Journal system.

2.3 Fiscal year

The Group’s fiscal year applicable for the preparation of its consolidated financial statements starts on 1 January and ends on 31 December.

2.4 Accounting currency

The consolidated financial statements are prepared in VND which is also the Company’s accounting currency.

Thien Long Group Corporation Consolidated financial statements 31 December 2013 Thien Long Group Corporation Consolidated financial statements 31 December 2013

B09-DN/HN B09-DN/HN

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the year ended 31 December 2013

2. BASIS OF PREPARATION (continued)

2.5 Basis of consolidation

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries for the year ended 31 December 2013.

Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continued to be consolidated until the date that such control ceases.

The financial statements of subsidiaries are prepared for the same reporting year as the Company, using consistent accounting policies.

All intra-company balances, income and expenses and unrealised gains or losses result from intra- company transactions are eliminated in full.

Minority interests represent the portion of profit or loss and net assets not held by the Group and are presented separately in the consolidated income statement and within equity in the consolidated balance sheet, separately from parent shareholders’ equity.

Acquisition of minority interests is accounted for using the parent entity extension method, whereby, the difference between the consideration and the fair value of the share of the net assets acquired is recognised in goodwill.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3.1 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, cash at banks and short-term, highly liquid investments with an original maturity of less than three months that are readily convertible into known amounts of cash and that are subject to an insignificant risk of change in value.

3.2 Inventories

Inventories are stated at the lower of cost incurred in bringing each product to its present location and condition, and net realisable value.

Net realisable value represents the estimated selling price in the ordinary course of business less the estimated costs to complete and the estimated costs necessary to make the sale.

The perpetual method is used to record inventories, which are valued as follows:

Raw materials, consumables and goods for sale

- cost of purchase on a weighted average basis.

Finished goods and work-in-process - cost of direct materials and labour plus attributable manufacturing overheads based on the normal operating capacity on a weighted average basis.

Provision for obsolete inventories

An inventory provision is created for the estimated loss arising due to the impairment of value (through diminution, damage, obsolescence, etc.) of raw materials, finished goods, and other inventories owned by the Group, based on appropriate evidence of impairment available at the balance sheet date.

Increases and decreases to the provision balance are recorded into the cost of goods sold account in the consolidated income statement.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the year ended 31 December 2013

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.3 Receivables

Receivables are presented in the consolidated financial statements at the carrying amounts due from customers and other debtors, after provision for doubtful debts.

The provision for doubtful debts represents amounts of outstanding receivables at the balance sheet date which are doubtful of being recovered. Increases and decreases to the provision balance are recorded as general and administrative expense in the consolidated income statement.

3.4 Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation.

The cost of a tangible fixed asset comprises its purchase price and any directly attributable costs of bringing the tangible fixed asset to working condition for its intended use. Expenditures for additions, improvements and renewals are added to the carrying amount of the assets and expenditures for maintenance and repairs are charged to the consolidated income statement as incurred.

When tangible fixed assets are sold or retired, their costs and accumulated depreciation are removed from the consolidated balance sheet and any gain or loss resulting from their disposal is included in the consolidated income statement.

3.5 Intangible fixed assets

Intangible fixed assets are stated at cost less accumulated amortisation.

The cost of an intangible fixed asset comprises its purchase price and any directly attributable costs of preparing the intangible fixed asset for its intended use. When intangible fixed assets are sold or retired, their costs and accumulated amortisation are removed from the consolidated balance sheet and any gain or loss resulting from their disposal is included in the consolidated income statement.

Land use rights

The advance payment for land rental and the land use rights certificate being issued, are recorded as intangible asset according to Circular No. 45/2013/TT-BTC issued by the Ministry of Finance on 25 April 2013 guiding the management, use and depreciation of fixed assets (“Circular 45”). The costs of land use rights is not amortized due to having indefinite useful life.

3.6 Depreciation and amortisation

Depreciation and amortisation of tangible and intangible fixed assets are calculated on a straight- line basis over the estimated useful life of each asset as follows:

Building and structure 3 - 25 years

Machinery and equipment 3 - 7 years

Motor vehicles 6 - 8 years

Office equipment 2 - 7 years

Moulds 3 - 4 years

Computer software 3 - 10 years

Copyright, patents 3 years

Other intangible assets 3 years

The useful life of the fixed assets and depreciation rates are reviewed periodically to ensure that the method and the period of the depreciation and amortisation are consistent with the expected pattern of economic benefits that will be derived from the use of fixed assets.

Thien Long Group Corporation Consolidated financial statements 31 December 2013 Thien Long Group Corporation Consolidated financial statements 31 December 2013

B09-DN/HN B09-DN/HN

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the year ended 31 December 2013

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.7 Borrowing costs

Borrowing costs consist of interest and other costs that the Group incurs in connection with the borrowing of funds and are recorded as expenses when incurred.

3.8 Prepaid expenses

Prepaid expenses are reported as short-term or long-term prepaid expenses on the consolidated balance sheet and amortised over the period for which the amounts are paid or the period in which economic benefits are generated in relation to these expenses.

Prepaid land rental

The prepaid land rental represents the unamortised balance of advance payment made in accordance with lease contract signed with Sonadezi Long Thanh Co., Ltd on 6 February 2007 for a period of 46 years. Before 10 June 2013, this payment was recognised as intangible fixed assets for amortisation over 46 years. Starting from 10 June 2013, according to Circular 45, the prepaid rental related to land lease contract with effecting after 2003 is not qualified for recognition as intangible fixed asset. Accordingly, the above prepaid rental was reclassified from intangible assets to long-term prepaid expenses for allocation to the consolidated income statement over the remaining lease period.

3.9 Investments in securities and other investments

Investments in securities and other investments are stated at their acquisition costs. Provision is made for any diminution in value of the investments at the balance sheet date in accordance with the guidance under Circular No. 228/2009/TT-BTC issued by the Ministry of Finance on 7 December 2009. Increases and decreases to the provision balance are recorded as finance expense in the consolidated income statement.

3.10 Payables and accruals

Payables and accruals are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the Group.

3.11 Accrual for severance pay

The severance pay to employee is accrued at the end of each reporting year for all employees who have more than 12 months in service up to 31 December 2008 at the rate of one-half of the average monthly salary for each year of service up to 31 December 2008 in accordance with the Labour Code, the Law on Social Insurance and related implementing guidance. Commencing 1 January 2009, the average monthly salary used in this calculation will be revised at the end of each reporting year following the average monthly salary of the 6-month period up to the reporting date. Any increase to the accrued amount will be taken to the consolidated income statement.

This accrued severance pay is used to settle the termination allowance to be paid to employee upon termination of their labour contract following Article 48 of the Labour Code.

3.12 Foreign currency transactions

The Group follows the guidance under Vietnamese Accounting Standard No. 10 - Effects of Changes in Foreign Exchange Rates and Circular No. 179/2012/TT-BTC providing guidance on

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the year ended 31 December 2013

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.13 Appropriation of net profits

Net profit after tax is available for appropriation to shareholders after approval in the annual general meeting, and after making appropriation to reserve funds in accordance with the Group’s Charter and Vietnam’s regulatory requirements.

The Group maintains the following reserve funds which are appropriated from the Group’s net profit as proposed by the Board of Management and subject to approval by shareholders at the annual general meeting.

Financial reserve fund

This fund is set aside to protect the Group's normal operations from business risks or losses, or to prepare for unforeseen losses or damages for objective reasons and force majeure, such as fire, economic and financial turmoil of the country or elsewhere.

Investment and development fund

This fund is set aside for use in the Group’s expansion of its operation or of in-depth investments.

Bonus and welfare fund

This fund is set aside for the purpose of pecuniary rewarding and encouraging, common benefits and improvement of the employees’ benefits.

3.14 Earnings per share

Basic earnings per share amounts are calculated by dividing net profit for the year (before appropriation for bonus and welfare fund) attributable to ordinary shareholders of the Group by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share amounts are calculated by dividing the net profit after tax attributable to ordinary equity holders of the Group by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

3.15 Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, excluding trade discount, rebate and sales return. The following specific recognition criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have passed to the buyer, usually upon the delivery of the goods.

Interest

Revenue is recognised as the interest accrues (taking into account the effective yield on the asset) unless collectability is in doubt.

Thien Long Group Corporation Consolidated financial statements 31 December 2013 Thien Long Group Corporation Consolidated financial statements 31 December 2013

B09-DN/HN B09-DN/HN

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the year ended 31 December 2013

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.16 Taxation Current income tax

Current income tax assets and liabilities for the current and prior years are measured at the amounts expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted as at the balance sheet date.

Current income tax is charged or credited to the consolidated income statement, except when it relates to items recognised directly to equity, in which case the deferred current income tax is also dealt with in equity.

Current income tax assets and liabilities are offset when there is a legally enforceable right for the Group to set off current tax assets against current tax liabilities and when the Group intends to settle its current tax assets and liabilities on a net basis.

Deferred income tax

Deferred tax is provided using the balance sheet liability method on temporary differences at the balance sheet date between the tax base of assets and liabilities and their carrying amount for financial reporting purposes.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

where the deferred tax liability arises from the initial recognition of an asset or liability in a transaction which at the time of the related transaction affects neither the accounting profit nor taxable profit or loss; and

in respect of taxable temporary differences associated with investments in associates, and interests in joint ventures where timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, carried forward unused tax credit and unused tax losses, to the extent that it is probable that taxable profit will be available against which deductible temporary differences, carried forward unused tax credit and unused tax losses can be utilised, except:

where the deferred tax asset in respect of deductible temporary differences which arises from the initial recognition of an asset or liability which at the time of the related transaction, affects neither the accounting profit nor taxable profit or loss; and

in respect of deductible temporary differences associated with investments in associates, and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled based on tax rates and tax laws that have been enacted at the balance sheet date.

Deferred tax is charged or credited to the consolidated income statement, except when it relates to items recognised directly to equity, in which case the deferred tax is also dealt with in the equity account.

Deferred tax assets and liabilities are offset when there is a legally enforceable right for the Group to set off current tax assets against current tax liabilities and when they relate to income taxes levied on the same taxable entity by the same taxation authority.

The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Previously unrecognised deferred income tax assets are re-assessed at each balance sheet date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax assets to be recovered.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) as at and for the year ended 31 December 2013

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

3.17 Financial instruments Initial recognition and presentation Financial assets

Financial assets within the scope of Circular No. 210/2009/TT-BTC providing guidance for the adoption in Vietnam of the International Financial Reporting Standards on presentation and disclosures of financial instruments (“Circular 210”) are classified, for disclosures in the notes to the consolidated financial statements, as financial assets at fair value through profit or loss, held-to- maturity investments, loans and receivables or available-for-sale financial assets as appropriate.

The Group determines the classification of its financial assets at initial recognition.

All financial assets are recognised initially at cost plus directly attributable transaction costs.

The Group’s financial assets include cash and short-term deposits, trade and other receivables, short-term investments, quoted and unquoted financial instruments.

Financial liabilities

Financial liabilities within the scope of Circular 210 are classified, for disclosures in the notes to the consolidated financial statements, as financial liabilities at fair value through profit or loss or financial liabilities measured at amortised cost as appropriate. The Group determines the classification of its financial liabilities at initial recognition.

All financial liabilities are recognised initially at cost plus directly attributable transaction costs.

The Group’s financial liabilities include loans, trade and other payables and other current liabilities.

Subsequent re-measurement

There is currently no guidance in Circular 210 in relation to subsequent re-measurement of financial instruments. Accordingly, the financial instruments are subsequently re-measured at cost.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the consolidated balance sheet if, and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.

4. CASH AND CASH EQUIVALENTS

VND Ending balance Beginning balance

Cash on hand 1,650,785,955 1,128,895,540

Cash at banks 75,798,725,909 74,171,954,419

Cash equivalents (*) 99,000,000,000 75,963,634,997

TOTAL 176,449,511,864 151,264,484,956

(*) Cash equivalents represent the short-term deposits at commercial banks with an original maturity of less than 3 months and earn interest at the applicable interest rates.

Một phần của tài liệu Báo cáo thường niên năm 2013 - Công ty Cổ phần Tập đoàn Thiên Long (Trang 90 - 104)

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